Have you heard about the couple that makes $500,000 a year and still feels average?
The story originally appeared on Financial Samurai, and discussed further on sites like CNBC and LATimes.
It details the expenses of a couple living in Brooklyn, New York. They each make $250,000 a year as lawyers, and have two young children (3 and 5 years old). Yet somehow they feel like they’re just “scraping by” on this $500k per year salary.
As the LA Times article and post commentators pointed out, a lot of their expenses are luxuries and not necessities. For example, having two cars in NYC ($9,600) or taking three family vacations per year ($18,000).
Here’s how they spend their $500k per year salary:
It’s pretty obvious this couple could reduce a significant amount of this spending and still live a very comfortable life. But how much exactly?
I decided to compare their annual expenses with the annual expenses of my household (consisting of myself, my wife Allison, and our two 18-year old Siamese cats).
I’ll get into the particulars and caveats in a moment, but let’s first look at our numbers for each of their line items. (Note: some of our expenses didn’t line up exactly with theirs, so I included a “Notes on our Budget” column):